Your client, Fysikum, is an operator of squash centres in Sweden. The squash centres include sauna, spa, pool, gym and of course the squash courts. Due to the extreme success in Sweden the company is considering expanding to other countries of Europe, in particular Germany.
Therefore they asked us to evaluate this possible expansion.
This case is made to be interviewer-led. Therefore the interviewer should guide the interviewee through the interview.
The case is split into two parts.
The first part describes more qualitative problems and has more open questions that should make the interviewee think about the problem and its solution.
The second part is more about quantitative problems and calculations. Here the interviewee should try to make his own calculations and solve the questions.
The questions in the big boxes should be read out and shared with the candidate.
The following framework/structure provides an overview of the case:
This question should give an overview of the candidate’s ability to structure an answer. The best way to solve this is by using a “3C’s” or “Porter’s Five Forces” analysis.
The interviewee should give the candidate a short period of time for brainstorming.
The answer should include some of the following points:
Good answers
This should be emphasized, as this point will make the candidate come across as “somebody from the team” and will make it easier for the interviewer to consider working with the interviewee.
The calculation should look like the following:
# of players per court & hour (average)
Hours played per week & court
# of members per court & week
Total # of members
Cost per member and year
4. Are you sure that this is an annual membership fee and not a weekly charge?
This is meant to be a tricky question to show the confidence of the interviewee. But as the annual costs are divided by the total number of members this is indeed an annual fee.
Good answer
Further investigation is required, in particular what the competitor is offering and if Fysikum can differentiate its services from this offering.
For instance if the competitor is using a cost leadership strategy and offers a very cheap, but low quality service, Fysikum could launch a premium, high quality squash centre.
Outstanding answer
There could be other outcomes of the investigation.
If the competitor operates across all segments, from low-end to high quality, and has a lower cost base, Fysikum should not enter the market. An entrance would only lead to a price competition that our client cannot win.
There are several possible solutions (some mentioned at the beginning of the case):
More questions to be added by you, interviewer!
At the end of the case, you will have the opportunity to suggest challenging questions about this case (to be asked for instance if the next interviewees solve the case very fast).
